Based on the classical Lorenz-Haken chaotic system, a four-dimensional laser chaotic system is constructed, and its nonlinear dynamical characteristics are theoretically analyzed and numerically verified. Through multi-dimensional analytical methods, including Lyapunov exponent spectra, bifurcation diagrams, and Poincar sections, the equilibrium point stability, nonlinear evolution mechanisms, and multi-stability coexistence characteristics of the chaotic system are systematically revealed. Based on phase space reconstruction and attractor dimension calculations, the complex dynamical behaviors of the system’s attractor are quantitatively characterized, revealing the symmetric dual-vortex chaotic attractor. To bridge the theoretical model with physical implementation, an equivalent analog circuit is designed and experimentally validated, demonstrating high consistency between the circuit output signals and numerical simulation results. Building on this foundation, a three-stage color image encryption algorithm combining position scrambling, dynamic DNA encoding, and reverse cascaded diffusion is proposed. The results show that the encrypted image achieves an information entropy of 7.999 4, adjacent pixel correlation coefficients below 0.003, and a uniform histogram distribution, demonstrating strong resistance to cropping and noise attacks. Theoretical analysis and experimental verification confirm that the system meets the requirements for information security in terms of chaotic characteristics and anti-attack capabilities, providing a new implementation scheme for optical communication encryption technologies.